Big wage rise pushes Niue Budget into deficit

The Niue legislature has passed a deficit budget which one MP says is largely due to a pay hike awarded to some public servants just prior to the election in May.

That poll saw Sir Toke Talagi returned for a 4th term as premier.

Before flying to Auckland two months ago for medical treatment, Sir Toke spoke of the robustness of the Niue economy.

But, due to the current deficit, which follows a similar one last year, things are not so rosy, according to MP Terry Coe.

Mr Coe told Don Wiseman the wage increase has put the economy under strain.